The weekly Davis Index for domestic old cast (Purja/Tense) remained unchanged at Rs85,000/mt del Delhi for the ninth consecutive week as manufacturers returned to the aluminium scrap market but shied away from closing deals. No trades were reported.
Some alloy manufacturers have resumed production in Delhi region at 35pc capacity. Traders confirmed a rise in inquiries from domestic manufacturers and said that they are under pressure to reduce prices of aluminium scrap. The weekly Davis Index for domestic Taint/Tabor (old sheet) settled flat at Rs98,000/mt del Delhi consumer on Tuesday. Several auto die-casters are in Faridabad are yet to resume production. The weekly index for imported Taint/Tabor was flat at $900/mt cfr India, down by $39/mt from the prior Friday.
Traders have returned to the market and are actively inquiring imported scrap. Davis Index heard trades for UK-origin old cast (Purja/Tense) at $970/mt cfr Dubai and $1,000/mt cfr India. Importers could face a shortage of containers and vessels to ship the seaborne scrap. Traders booking imported aluminium scrap from Malaysia are challenged by the unavailability of vessels till June.
Demand for domestic scrap is hit by shortage of labourers in the industrial belts. Alloy manufacturers in Kathwada, near Ahmedabad, Gujarat are struggling to resume production for want of labourers. Scrap traders in Mumbai, Maharashtra are unable to resume operation due to rising number of COVID-19 cases. The weekly index for domestic old sheet settled flat at Rs98,500/mt del Mumbai consumer with no trades reported.
The weekly index for aluminium EC wire remained flat at Rs130,000/mt del Delhi consumer and del Mumbai consumer. The index for Indian old cast settled flat at Rs83,750/mt del Mumbai consumer.
The index for aluminium utensil settled unchanged at Rs106,000/mt del Delhi consumer and Rs103,500/mt del Mumbai consumer on a lack of demand.
($1= Rs75.61)